![\"Employco](\"https:\/\/www.employco.com\/images\/blog\/Blog_EmploycoWebinar_Header.png\")
<\/p>\n<\/p>\n
BULLETIN<\/a> As we continue through these uncertain times, many companies are dealing with the reality that lower revenue cannot support the current employment. As a result, employers are considering their options to lower payroll expense. We\u2019ve created the following chart that summarizes the options and differences between Furlough and Layoff.<\/p>\n Outside of a furlough vs layoff decision, some employers are considering a company-wide reduction in pay (e.g., 20% pay cut for all employees). When reducing an employee\u2019s pay or hours, ensure that you stay compliant in areas such as minimum wage, exempt\/salaried employee pay threshold, and benefits eligibility.<\/p>\n <\/p>\n Stay up-to-date with the latest material on our coronavirus web page<\/a> – dedicated to sharing information about COVID-19 and how it relates to the workplace:<\/p>\n https:\/\/www.employco.com\/coronavirus<\/a><\/p>\n We will continue to monitor the situation and provide updates throughout the process. We hope you and your family and friends are healthy.<\/p>\n Please contact us<\/a> if you have any questions.<\/p>\n
\nMarch 18, 2020 (UPDATE)<\/strong><\/p>\n![\"COVID-19\"](\"https:\/\/www.employco.com\/images\/newsletter\/bulletin\/bulletin_COVID-19.jpg\")
<\/p>\n\n
\n <\/th>\n FURLOUGH<\/span><\/th>\n LAYOFF<\/span><\/th>\n<\/tr>\n \n Description<\/strong><\/td>\n Short-term leave of absence<\/td>\n Employment ended due to lack of work or other business reasons<\/td>\n<\/tr>\n \n Employment Status<\/strong><\/td>\n Remains \u201cactive\u201d<\/td>\n Changes to \u201cterminated\u201d<\/td>\n<\/tr>\n \n Employee Benefits<\/strong><\/td>\n Eligibility likely to continue. Employer can determine method of premium collection.<\/td>\n Eligibility ends \u2013 typically on last day of month. COBRA would be offered.<\/td>\n<\/tr>\n \n Unemployment Claims<\/span>
\n*subject to standard requirements<\/span><\/td>\nEach state may handle differently.
\n(e.g., Furloughed Illinois residents likely to be approved*)<\/td>\nEach state may handle differently.
\n(e.g., Laid-off Illinois residents would be approved*)<\/td>\n<\/tr>\n\n Return to Work<\/strong><\/td>\n No significant changes or paperwork required.<\/td>\n Employees would complete new hire paperwork (e.g., I-9) and may be subject to new hire waiting period for benefits eligibility.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
![\"Jason](\"https:\/\/www.employco.com\/images\/blog\/Blog_EmploycoWebinar_Jason-ContactCard.png\")
<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"